Vodafone Idea posts loss of Rs 4,973 crores in its maiden financial results post-merger

“The Vodafone Idea Limited is India’s largest operator with a subscriber base of 42.2 crores”

Vodafone Idea continued to face the impact of tariff war. In their maiden financial results for September quarter post-merger, the company has posted a consolidated loss of Rs 4,973 crore. To recall, Idea Cellular was merged with Vodafone India to become India’s largest telecom operator with a subscriber base of 42.2 crores, back in August.

The report further added that the reported massive net loss for Idea Cellular is up to August 30th and for Vodafone India from August 31st and September 30th. For that matter, the results are not comparable to the earlier period, Vodafone Idea said in a statement. Now, the merged entity’s gross debt as of September 30th, 2018 stands at Rs 1,21,100 crore.

The telecom operator notes that the customer moving to low-cost plans resulted in the loss during the quarter. “Headline tariffs remained stable during the quarter. However, customer migration to lower ARPU (average revenue per user) offerings led to a 4.7 percent quarter-on-quarter (QoQ) decline in ARPU to Rs 88 for the quarter,” the statement further added.

Apart from this, the Vodafone Idea Limited posted a consolidated revenue of Rs 7,663 crores during the same July-September 2018 quarter. “Post-merger, the synergy between assets and operations is progressing well. Committee of Board members to evaluate a potential capital raise of up to Rs 250 billion, promoter shareholders have indicated to the Board that they would contribute up to Rs 182.5 billion,” Vodafone Idea said.

Elsewhere, the Vodafone Idea Limited is also planning to actively explore the potential sale of its fibre network, which is said to consist over 1,56,000km of intra- and inter-city routes in order to provide further balance sheet flexibility.

With inputs from PTI

from 91mobiles.com https://ift.tt/2Fqe6IZ
>